Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
The EDS business group will continue to be led by president and CEO Ron Rittenmeyer. Of the remaining nine members of the group's leadership team, all but one are existing EDS employees. The exception is senior vice president, applications services Andy Mattes, who was previously senior vice president, HP outsourcing services.
"This is a historic day for HP and EDS and for the clients we serve," said Mark Hurd, HP chairman and chief executive officer.
"Independently, each company is a respected industry leader. Together, we are a global leader, with the capability to serve our clients - whatever their size, location or sector - with one of the most comprehensive and competitive portfolios in the industry."
The combined services businesses cover 80 countries and involve 210,000 employees and saw revenue of more than $38 billion in fiscal 2007.
Ovum's Madden suggests that head count will soon fall: "it’s clear that HP is anxious to bring EDS’ cost structure into alignment with the greater HP organization – and undoubtedly job cuts will be coming somewhere."
The deal has been accepted by shareholders of both companies, and all that remains is to obtain regulatory approval.
Will IBM be quaking in its corporate boots? As the other global outsourcer that also has a significant hardware operation, it's the obvious target of the HP-EDS hookup.
There's no doubt that the strengthening of a competitor always presents a new challenge, but mergers and acquisitions aren't instant and come with challenges of their own. There may be around 500 people working on the integration of HP and EDS, but the final chapter of the marriage is yet to be written.
David Bass
| For the fourth year in a row, IDC has placed content security provider Websense (NASDAQ: WBSN) at the top of the IDC Worldwide Web Security 2011 –…
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